DSP Investment Managers’ Quant Fund opens on May 20

This fund, according to a release issued here on Monday, will systematically follow investment rules tested over market cycles with minimum human bias.

The fund aims to deliver superior returns compared to the underlying benchmark — BSE200 TRI — over the medium to long term using rational principles combined with scientific risk management and ensure adequate diversification through stock and sector concentration limits.

The new fund offer (NFO) is slated to open on May 20 and close on June 3.

The fund starts with BSE200 as the universe. Stocks of companies that have very high debt, excessive price volatility and inefficient capital allocation are removed from the consideration set and the remaining universe is ranked based on factors representing quality, growth and value. This process results in the selection of about 50 companies to which appropriate weights are allocated. This portfolio is rebalanced semi-annually.

“The fund is designed to provide investors a well-diversified large-cap-oriented core portfolio built around the three factors (quality, growth and value),” Aparna Karnik, Senior Vice-President and Head (Risk and Quantitative Analysis), DSP Investment, said.